Sec. 5401. Public charter schools
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Part D of title V (20 U.S.C. 7241 et seq.) is amended to read as follows: The purpose of this part is to support the creation, expansion, and replication of high-performing charter schools that serve the needs and increase the academic achievement of all students. From the funds appropriated to carry out this part for a fiscal year— 85 percent shall be available to carry out subpart 1; and 15 percent shall be available to carry out subpart 2. In this subpart: The term charter school means a public school that— is governed by a separate and independent board that exercises authority over 1 or more schools, including authority in the areas of governance, personnel, budget, schedule, and instructional program; has ongoing, significant autonomy in the areas of— the hiring, replacement, and salaries of the school staff; the school budget; scheduling formats for the school day and school year; the instructional programs of the school, including instructional models and curricula; and the management and daily operation of the school; in accordance with a specific State statute authorizing the granting of charters to schools, is exempt from significant State or local rules that inhibit the flexible operation and management of public schools, but not from any rules relating to the other requirements of this paragraph; is created by a developer as a public school, or is adapted by a developer from an existing public school, and is operated under public supervision and direction; operates in pursuit of a specific set of educational objectives determined by the school’s developer and agreed to by the charter school authorizer; provides 1 or more programs of elementary education, secondary education, or both, including early childhood education, and may also provide adult education, in accordance with State law; is nonsectarian in its programs, admissions policies, employment practices, and all other operations, and is not affiliated with a sectarian school or religious institution; does not charge tuition; complies with the Age Discrimination Act of 1975, title VI of the Civil Rights Act of 1964, title IX of the Education Amendments of 1972, section 504 of the Rehabilitation Act of 1973, title II of the Americans with Disabilities Act of 1990, and part B of the Individuals with Disabilities Education Act; is a school to which parents choose to send their children, and that admits students on the basis of a lottery if more students apply for admission than can be accommodated, except as modified by the Secretary by regulation in accordance with clause
(iv)or
(v)of section 1116(d)(4)(B); complies with the same Federal and State audit requirements as do other elementary schools, secondary schools, and early childhood education and adult education programs, as applicable, in the State, unless such requirements are specifically waived for the purpose of this program; meets all applicable Federal, State, and local health and safety requirements; operates in accordance with State law; and has a written performance contract with a charter school authorizer that includes— a description of how student performance will be measured on the basis of— State assessments that are required of other public schools; and any other assessments that are mutually agreeable to the charter school authorizer and the charter school; a requirement that student academic achievement and growth, consistent with section 1111, for the students enrolled at the school as a whole and for each subgroup described in section 1111(a)(3)(D) will be used as a primary factor in decisions about the renewal or revocation of the charter, in addition to other criteria, as appropriate; the student academic achievement and growth, consistent with section 1111, and student retention goals, and, in the case of a high school, graduation rate goals for the students enrolled at the school as a whole and for each subgroup described in section 1111(a)(3)(D), and any other goals to be achieved by the end of the contract period; the obligations and responsibilities of the charter school and the charter school authorizer; and a description of the autonomy that will be granted to the charter school in each area described under subparagraph (B). The term charter school authorizer means any public or nonprofit entity that has the authority under State law, and is approved by the Secretary, to authorize or approve a public charter school. The term developer means any individual, group of individuals, or public nonprofit organization that— has applied for, or been granted, a charter for a charter school; or has received authorization to start a charter school. The term eligible entity means— a State educational agency; a local educational agency, except a charter school that is considered a local educational agency under State law; a charter school authorizer; or a charter management organization. The term expand means to increase the student enrollment of an existing high-performing charter school by more than 50 percent or through the addition of not less than 2 grades to such existing charter school over the course of a grant or subgrant under this part. The term high-performing charter school means— in the case of a charter school that was not open or did not enroll students in the preceding school year, a charter school that has a written performance contract with a charter school authorizer that includes, for the students enrolled at the school as a whole and for each subgroup described in section 1111(a)(3)(D) for the most recent year for which such data are available— student academic achievement and growth goals (as measured, in the case of a charter school that is an elementary school or secondary school, by performance on the statewide academic assessments required under section 1111(a)(2) and individual academic growth, consistent with section 1111(a)) that are higher than the average student academic achievement and growth results, consistent with section 1111, in demographically similar schools in the State; student retention goals that are similar to, or greater than, the average student retention rates in demographically similar schools in the State; and if the charter school is a high school, goals for graduation rates, rates of student enrollment at institutions of higher education, and rates of student persistence at institutions of higher education that are higher than such average rates in demographically similar schools in the State; or in the case of a charter school that was open and enrolled students for the preceding school year, a charter school that has, for the students enrolled at the school as a whole and for each subgroup described in section 1111(a)(3)(D) for the most recent year for which such data are available— student academic achievement and growth results (as measured, in the case of a charter school that is an elementary school or secondary school, by performance on the statewide academic assessments required under section 1111(a)(2) and individual academic growth, consistent with section 1111) that are significantly higher than the average student academic achievement and growth results, consistent with section 1111, in demographically similar schools in the State; student retention rates that are similar to or higher than the average student retention rates in demographically similar schools in the State; and if the school is a high school, higher graduation rates, rates of student enrollment at institutions of higher education, and rates of student persistence at institutions of higher education than such average rates in demographically similar schools in the State. The term replicate means to open 1 or more new campuses of, or schools based on, an existing high-performing charter school under a new or existing charter, or both, over the course of a grant or subgrant under this part. From the amount available to carry out this subpart, the Secretary shall award grants, on a competitive basis, to eligible entities to enable such eligible entities to award subgrants to developers to create, expand, or replicate 1 or more high-performing charter schools, including through conversion of an existing public school into a charter school. The Secretary shall use not less than 25 percent of funds to award grants to eligible entities described in 5411(4)(A). In awarding grants under this subpart, the Secretary shall consider— the geographic diversity of the eligible entities, including the distribution of grants among urban, suburban, and rural areas; and the number of eligible entities in a State that are receiving grants under this subpart in any fiscal year. In determining the amount of each grant to be awarded under subsection (a), the Secretary shall consider— the number of operating charter schools under the jurisdiction or in the service area of the eligible entity; to the extent practicable, the number of students, including students on charter school waiting lists, that will be served by high-performing charter schools that receive funds under this subpart; and the amount of funds that is needed to implement the activities described in the approved application. Each grant awarded under this subpart shall be for an initial period of not more than 3 years. The Secretary may renew a grant awarded under this subpart for an additional period of not more than 2 years, if the eligible entity is achieving the objectives of the grant and has shown improvement on the performance measures and targets described in section 5417(a). An eligible entity described under subparagraph
(A)of section 5411(4) may not receive more than 1 grant at a time under this section. A developer may not receive more than 1 grant or subgrant at a time under this section. An eligible entity that receives a grant under this subpart may use not more than a total of 5 percent of grant funds for administrative expenses associated with the grant, including for improvement of the eligible entity’s oversight or management of charter schools. An eligible entity described in subparagraph (A), (B), or
(C)of section 5411(4) shall use 5 percent of grant funds for improving authorizer quality, including charter school oversight and monitoring systems and procedures for revoking or not renewing charters. The Secretary may waive a statutory or regulatory requirement over which the Secretary exercises administrative authority, except a requirement described in section 5411(1), if— the waiver is requested in an approved application under this subpart; and the Secretary determines that granting the waiver will promote the purpose of this subpart. Each eligible entity desiring a grant under this subpart shall submit an application to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may require. At a minimum, the application described in subsection
(a)shall include a description of — how the eligible entity will use grant funds to create, expand, or replicate 1 or more high-performing charter schools; the need for the high-performing charter schools that the eligible entity seeks to support, including information that demonstrates the interest of parents and communities in increasing charter school enrollment capacity, such as the number of students who are on waiting lists for charter schools under the jurisdiction of the eligible entity; the performance measures the eligible entity will use to measure outcomes; how the eligible entity will provide information and support to parents, families, and students regarding the available charter school options in a simple, clear, and easily accessible format and, to the extent practicable, in a language that such parents, families, and students can understand; how the eligible entity will coordinate the grant funds received under this subpart with other Federal, State, and local funds; how the eligible entity will ensure that each charter school within such eligible entity's jurisdiction or service area— meets the requirements of section 5411(1); and provides equitable access and effectively serves the needs of all students, including children with disabilities and English learners, and implements outreach and recruitment practices that include families of such students; how the eligible entity will award subgrants to developers, on a competitive basis and through a high-quality review process, including a description of the subgrant application; how the eligible entity will target subgrants to high-performing charter schools that plan to serve students who attend schools that have been identified through the State accountability and improvement system described in section 1116; the eligible entity's record, if applicable, of success in creating, expanding, replicating, managing, and overseeing high-performing charter schools, and closing unsuccessful schools; how the eligible entity will hold charter schools within such eligible entity's jurisdiction accountable if such schools do not meet the objectives specified in the performance contract described in section 5411(1)(N), including by closing unsuccessful schools; and how charter school authorizers are approved, monitored, held accountable for establishing rigorous standards, periodically reviewed, and re-approved in the State in which the eligible entity operates, based on the performance of the charter schools that such charter school authorizers authorize, including in the areas of student safety, financial management, and compliance with all applicable statutes and regulations. Each eligible entity described in section 5411(4)(A) shall include in the application described in paragraph
(1)(in addition to the requirements of such paragraph), the following: A description of the State’s laws, policies, or procedures, if applicable, that address— how decisions are made to close unsuccessful charter schools, and how student academic achievement and growth, consistent with section 1111, for all students and for each subgroup of students described in section 1111(a)(3)(D), is a primary factor in such decisions; how charter schools are monitored and held accountable for— meeting the requirements described in section 5411(1); and providing equitable access and effectively serving the needs of all students, including students with disabilities and English learners; and how a charter school that is considered a local educational agency under State law, or a local educational agency in which a charter school is located, will comply with subsections (a)(5) and (e)(1)(B) of section 613 of the Individuals with Disabilities Education Act. Information about the eligible entity’s record of funding charter schools, including funding charter school facilities. Information about the number of charter schools in the State that— have been closed or have had charters revoked or not renewed in the preceding 5-year period, and the reasons for such closures, revocations, or nonrenewals; have been identified, through the State accountability and improvement system, as focus schools or priority schools under subsection
(c)or
(d)of section 1116 in the preceding 5-year period; have met objectives specified in the performance contract described in section 5411(1)(N); and the charter school authorizer has authorized that are high-performing charter schools, and the percentage of such charter schools as compared to the total number of charter schools that the charter school authorizer has authorized. Each eligible entity described in section 5411(4)(B) shall include in the application described in paragraph
(1)(in addition to the requirements described in such paragraph), a description of the eligible entity’s policies and procedures for— ensuring that charter schools under the jurisdiction of such eligible entity have equitable access to school facilities and school facilities financing; complying with subsections (a)(5) and (e)(1)(B) of section 613 of the Individuals with Disabilities Education Act; and supporting public school choice. Each eligible entity described in section 5411(4)(C) shall include in the application described in paragraph
(1)(in addition to the requirements of such paragraph), the following: A demonstration that the eligible entity has explicit and clear policies and procedures in place for the approval, monitoring, renewal, and closure of charter schools, and an assurance that such policies and procedures make student academic achievement and growth, consistent with section 1111, for all students and for each subgroup of students described in section 1111(a)(3)(D), a primary factor in such decisions. A description of how the eligible entity will make publicly available (in a clear and uniform format, a timely manner, and a form that is easily accessible, and, to the extent practicable, in a language that families and students can understand)— information about the criteria and procedures for granting, denying, revoking, and renewing charters for charter schools; and the results of decisions relating to the granting, denial, revocation, and renewal of charters for charter schools, including performance data and other relevant information on which each decision is based. Information about the number of charter schools that the charter school authorizer has authorized in each of the following categories: Charter schools that have been closed or have had charters revoked or not renewed by the eligible entity in the preceding 5-year period, and the reasons for such closures, revocations, or nonrenewals. Charter schools that have been identified as focus schools or priority schools under subsection
(c)or
(d)of section 1116 through the State accountability and improvement system. Charter schools that have met objectives specified in the performance contract described in section 5411(1)(N). Charter schools that are high-performing charter schools, and the percentage of such charter schools as compared to the total number of charter schools that the charter school authorizer has authorized. Each eligible entity described in section 5411(4)(D) shall include in the application described in paragraph
(1)(in addition to the requirements of such paragraph), a description of— the qualifications of such eligible entity's management team; and a multi-year financial and operating model for each of the high-performing charter schools that such eligible entity will create, expand, or replicate under the grant. In the case of a developer that plans to open a charter school in a jurisdiction or service area where no eligible entity will be awarding subgrants under this subpart for the fiscal year for which the developer applies, the Secretary may award a grant to such developer if such developer has an approved application that includes the requirements described in subparagraphs
(A)through
(F)of paragraph
(1)and paragraph (5). The requirements of subsections
(b)and
(c)of section 5416 and section 5417(c) shall apply to a developer receiving a grant under this paragraph in the same manner as such sections apply to a developer receiving a subgrant under section 5416, except that the developer shall submit the data under section 5417(c) directly to the Secretary. In awarding grants to eligible entities under this subpart, the Secretary shall consider— the quality of the eligible entity's application; the eligible entity’s record, if applicable, of success in creating, expanding, replicating, managing, and overseeing high-performing charter schools; the eligible entity’s record of discontinuing funding or closing low-performing charter schools, including, as applicable, by revoking or not renewing the charters of such charter schools, and the eligible entity’s commitment to discontinuing funding or closing low-performing charter schools in the future; the extent to which the eligible entity demonstrates that such eligible entity will award subgrants targeted to serving students who attend schools that have been identified as focus schools or priority schools under subsection
(c)or
(d)of section 1116 through the State accountability and improvement system; the quality of the eligible entity’s plan for supporting subgrant recipients, through such activities as technical assistance, directly or through grants, contracts, or cooperative agreements, in order to— improve student academic achievement and growth, consistent with section 1111, for all students and for each subgroup of students described in section 1111(a)(3)(D); and promote effective outreach to, and recruitment of, students who are children with disabilities and students who are English learners, and the parents and families of such students; and the extent to which the State in which the eligible entity operates provides for and enforces high-quality standards for charter school authorizers, including by establishing standards for rigorous and periodic reviews. In the case of an applicant that is an eligible entity described in section 5411(4)(A), in addition to the elements described in paragraph (1), the Secretary shall also consider the extent to which such eligible entity— ensures that charter schools receive equitable funding compared to other public schools in the State, and a commensurate share of Federal, State, and local revenues compared to public schools in the State, including equitable State funding to support early childhood education programs operated by charter schools in the State, in accordance with State law; and provides charter schools with equitable access to funds for facilities (which may include funds for leasing or purchasing facilities or for making tenant improvements), assistance for facilities acquisition, access to public facilities, the ability to share in the proceeds of bonds and levies, or other support related to facilities. In the case of an applicant that is an eligible entity described in section 5411(4)(B) (except for a charter school that is considered a local educational agency under State law), in addition to the elements described in paragraph (1), the Secretary shall also consider— if charter schools are operating within the area served by such eligible entity, the extent to which the eligible entity has policies and procedures in place to ensure that— charter schools have equitable access to school facilities; or charter schools are not denied access to available public school facilities; and the extent to which the eligible entity demonstrates support for public school choice. In the case of an applicant that is an eligible entity described in section 5411(4)(C), in addition to the elements described in paragraph (1), the Secretary shall also consider the eligible entity’s record of success in authorizing and supporting high-performing charter schools. In the case of an applicant that is an eligible entity described in section 5411(4)(D), in addition to the elements described in paragraph (1), as applicable, the Secretary shall also consider— the quality of the eligible entity’s management team; and the quality and sustainability of the eligible entity’s multi-year financial and operating model. In awarding grants under this subpart, the Secretary shall give priority to eligible entities that propose to create, expand, or replicate high-performing charter schools that plan to enroll a large percentage of students from low-income families. In awarding grants under this subpart, the Secretary may give priority to eligible entities that propose to create, expand, or replicate a high-performing charter school that will have a diverse student population. In the case of an applicant that is an eligible entity described in section 5411(4)(A), the Secretary shall give priority to such eligible entities— from States that do not have a law that prohibits, or effectively inhibits, increasing the number of high-performing charter schools in the State; from States that— provide for, and adequately support, 2 or more charter school authorizers, of which not less than 1 is a statewide charter school authorizer; or in the case of a State in which local educational agencies are the only charter school authorizers— allow for an appeals process through which developers have an opportunity to appeal a denial to another authorizer that will issue a final determination regarding whether or not to grant the developer a charter; and require charter school authorizers to indicate an affirmative interest in serving as charter school authorizers; and that have a policy or procedure in place that ensures that— charter schools are reauthorized or have their charter renewed not less than once every 5 years; and charter schools submit independently audited financial statements to the authorizer. Each eligible entity receiving a grant under section 5412(a) shall— use not less than 95 percent of the remaining grant funds, after the reservations made under section 5412(g), to award subgrants to 1 or more developers, as described in section 5416, to enable such developers to create, expand, or replicate 1 or more high-performing charter schools (which may include opening new schools or converting existing schools into charter schools) in the area served by the eligible entity or under the jurisdiction of the eligible entity; in awarding subgrants, give priority to developers that propose to create, expand, or replicate a high-performing charter school in which a large percentage of the students enrolled are from low-income families; provide developers who are receiving a subgrant with support and technical assistance in— improving student academic achievement and growth, consistent with section 1111; effectively serving the needs of all students, including students who are children with disabilities and students who are English learners; and implementing outreach and recruitment practices that includes families of students who are children with disabilities and English learners; directly, or through a partnership with a nonprofit organization (such as a community-based organization), develop and implement parent, family, and student information, outreach, and recruitment programs to provide information and support to parents, families, and students about the public school choice options available to them, including students who are children with disabilities and students who are English learners, in a simple, clear, and easily accessible format and, to the extent practicable, in a language that such parents, families, and students can understand. Each eligible entity receiving a grant under section 5412(a) may use not more than 2.5 percent of grant funds to disseminate information to public schools in the eligible entity's jurisdiction or service area about lessons learned through the grant activities, in order to— successfully address the education needs of all students, including students who are children with disabilities and students who are English learners; and replicate high-performing charter school models. Each developer that desires to receive a subgrant under this subpart shall submit an application to the appropriate eligible entity at such time, in such form, and including such information and assurances as the eligible entity may reasonably require, which shall include the information required under subparagraphs
(A)through
(F)of paragraph
(1)and paragraph
(5)of section 5413(b). A developer that receives a subgrant under this subpart shall use such subgrant funds to create, expand, or replicate 1 or more high-performing charter schools, which may include carrying out the following activities: If necessary, carrying out not more than 12 months of planning and program design, unless such developer demonstrates the need for an additional planning period of not more than 3 months. Recruiting and providing preparation, induction, and professional development for teachers, school leaders, and other staff who will work in a charter school that is supported by the developer. Acquiring necessary equipment, supplies, and educational materials, including curricula, assessments, and instructional materials. Professional development and implementation of systems for the delivery of appropriate services for students who are children with disabilities and students who are English learners, including through centralizing, purchasing, or sharing the provision of such services with other organizations. Develop transportation systems to provide transportation to students to and from the school. Paying operational costs for a charter school that cannot be met through State or local funding sources. Directly, or through a partnership with a nonprofit organization (including a community-based organization), developing and implementing parent, family, and student information and outreach programs to provide information and support to parents, families, and students about each charter school, in a simple, clear, and easily accessible format and, to the extent practicable, in a language that the parents, families, and students can understand. Developing and implementing effective outreach and recruitment strategies to inform families of students who are children with disabilities and students who are English learners about the charter school, the charter school admissions process, and the charter school's plan to effectively provide appropriate educational and related services to such students. Evaluating and disseminating information, including through technical assistance, about the effectiveness of the activities supported by the subgrant. Not more than 1 percent of subgrant funds may be used to carry out the activities described in subsection (b)(9). Each eligible entity receiving a grant under this subpart shall establish performance measures and annual targets, approved by the Secretary, for the charter schools that are created, expanded, or replicated with funds provided through a grant or subgrant under this subpart. Such measures and targets shall include, at a minimum, in the aggregate and disaggregated by each subgroup of students described in section 1111(a)(3)(D)— the number of students enrolled in each charter school; the number of students enrolled in each high-performing charter school; the number of students enrolled in each high-performing charter school who were formerly attending a school that has been identified as a focus school or priority school under subsection
(c)or
(d)of section 1116 through the State accountability and improvement system; student academic achievement and growth, consistent with section 1111, including, if applicable, performance on the State academic assessments required under section 1111(a)(2), and student growth consistent with section 1111; student retention rates; in the case of a public charter school that is a secondary school, student graduation rates, and student rates of enrollment and persistence in institutions of higher education; and other measures required by the Secretary. Each eligible entity receiving a grant under this subpart shall annually prepare and submit a report to the Secretary containing the information described under subsection (a). Each developer receiving a subgrant under this subpart from an eligible entity shall provide the eligible entity with the data necessary to comply with the requirements of this section. For purposes of the allocation to schools by the States or their agencies of funds under part A of title I, and any other Federal funds which the Secretary allocates to States on a formula basis, the Secretary and each State educational agency shall take such measures as are necessary to ensure that every charter school receives the Federal funding for which the charter school is eligible not later than 5 months after the charter school first opens, notwithstanding the fact that the identity and characteristics of the students enrolling in that charter school are not fully and completely determined until that charter school actually opens. The measures similarly shall ensure that every charter school expanding its enrollment in any subsequent year of operation receives the Federal funding for which the charter school is eligible not later than 5 months after such expansion. The measures described in subsection
(a)shall include provision for appropriate adjustments, through recovery of funds or reduction of payments for the succeeding year, in cases where payments made to a charter school on the basis of estimated or projected enrollment data exceed the amounts that the school is eligible to receive on the basis of actual or final enrollment data. For charter schools that first open after November 1 of any academic year, the State, in accordance with guidance provided by the Secretary and applicable Federal statutes and regulations, shall ensure that such charter schools that are eligible for the funds described in subsection
(a)for such academic year have a full and fair opportunity to receive those funds during the charter schools' first year of operation. State educational agencies and local educational agencies receiving funds under part A of title I or any other Federal funds from the Secretary, shall, in the most timely manner possible and to the extent practicable, ensure that a student's records and, if applicable, a student's individualized education program as defined in section 602 of the Individuals with Disabilities Education Act, are transferred to a charter school upon the transfer of the student to the charter school, and to another public school upon the transfer of the student from a charter school to another public school, in accordance with applicable State law. From funds made available under this subpart for each fiscal year, the Secretary may reserve not more than 5 percent for national activities to carry out (directly or through grants, contracts that use a competitive bidding process, or cooperative agreements) research, development, data collection, technical assistance, outreach, and dissemination activities, including— research, technical assistance, and other activities to assist eligible entities receiving a grant under this subpart, and other eligible entities in improving the entity's capacity to— create, expand, replicate, operate, or support high-performing charter schools that meet the needs of, and improve the outcomes for, all students, including students who are children with disabilities and students who are English learners; support charter school authorizers to improve quality through the adoption of research-based policies and procedures and increased capacity; and work to turn around schools that have been identified as focus schools or priority schools under subsection
(c)or
(d)of section 1116 through the State accountability and improvement system; providing for the research and dissemination of information about specific charter school models and program characteristics for which there is strong evidence of a significant impact on improving student academic achievement and growth, consistent with section 1111, for all students, including students who are children with disabilities and English learners; developing and implementing activities that help parents, families, students, and the community identify and access high-performing charter schools; providing for the collection of information regarding the financial resources available to charter schools (including access to private capital) and widely disseminating to charter schools any such relevant information and model descriptions of successful programs; and carrying out other related activities. The purpose of this subpart is to provide grants to eligible entities to improve access to facilities and facilities financing for high-performing charter schools and assist such schools to address the cost of acquiring, constructing, and renovating facilities. In this subpart: The term eligible entity means— a State educational agency; a local educational agency, except a charter school that is considered a local educational agency under State law; a nonprofit entity; a State financing authority; or a consortium of entities described in any of subparagraphs
(A)through (D). The term high-performing charter school has the meaning given such term in section 5411. The term per-pupil facilities aid program means a program— that is specified in State law; that provides annual financing, on a per-pupil basis, for charter school facilities; and in which a State makes payments, on a per-pupil basis, to charter schools to provide such schools with financing— that is dedicated solely for funding charter school facilities; or a portion of which is dedicated for funding charter school facilities. The Secretary shall use not less than 65 percent of the amount available to carry out this subpart to award grants on a competitive basis to eligible entities to enable such eligible entities to demonstrate innovative credit enhancement methods of assisting high-performing charter schools to access private sector capital to address the cost of acquiring, constructing, and renovating facilities by enhancing the availability of loans or bond financing. The Secretary shall use the remainder of the amount available to carry out this subpart to award grants on a competitive basis to eligible entities to— improve access to facilities and facilities financing for high-performing charter schools, through methods that may include— leveraging State and local facilities funds, including the cost of implementing school bond programs that include high-performing charter schools; implementing open-facilities-access programs or making available renovated or adapted space for high-performing charter schools; and assisting with constructing or improving, at low cost, facilities for high-performing charter schools through innovative methods; and support an eligible entity described in section 5432(1)(A) in the establishment, enhancement, and administration of a per-pupil facilities aid program through Federal payments that shall be not more than— 90 percent of the cost, for the first fiscal year for which the program receives assistance under this subsection; 80 percent in the second such year; 60 percent in the third such year; 40 percent in the fourth such year; and 20 percent in the fifth such year. A State receiving a grant under subsection (b)(2) may partner with 1 or more organizations to provide not more than 50 percent of the State share of the cost of establishing, enhancing, or administering the per-pupil facilities aid program. In determining the amount of each grant to be awarded under this subpart, the Secretary shall consider— the quality of the application submitted under section 5435; the number of students that are served or may be served by high-performing charter schools that would receive assistance under the grant program; and the amount of funds that is needed to implement the activities described in the approved application. Funds made available under this section shall be used to supplement, and not supplant, State and local public funds expended to provide programs for charter schools. An eligible entity receiving a grant under this subpart shall use the funds to assist 1 or more high-performing charter schools to accomplish 1 or both of the following objectives: The acquisition (by purchase, lease, donation, or otherwise) of an interest (including an interest held by a third party for the benefit of a charter school) in improved or unimproved real property that is necessary to commence or continue the operation of a charter school. The construction of new facilities, or the renovation, repair, or alteration of existing facilities, necessary to commence or continue the operation of a charter school. Each eligible entity desiring a grant under this subpart shall submit an application to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may require. An application submitted under subsection
(a)shall include— a description of the activities that the eligible entity proposes to carry out using funds received under this subpart; a demonstration that the eligible entity will consider the quality of a charter school when determining— which charter schools will receive assistance under this subpart; how much grant assistance will be provided to each charter school; and the type of assistance that each charter school will receive; a description of the eligible entity’s record of successfully carrying out the activities that such eligible entity proposes to carry out; if applicable, the eligible entity’s record of leveraging private-sector funding and a description of how the proposed activities will leverage the maximum amount of private-sector financing capital relative to the amount of government funding; an explanation of how the eligible entity possesses sufficient expertise in education to evaluate the likelihood of success of a charter school for which facilities financing is sought; in the case of an application submitted by an eligible entity that includes 1 or more State or local educational agencies, a description of the agency's policies and procedures for ensuring that charter schools have equitable access to school facilities; and such other information as the Secretary may reasonably require. In awarding grants under this subpart, the Secretary shall consider— the quality of the eligible entity's application; the extent to which the eligible entity proposes to support high-performing charter schools that plan to enroll a large percentage of students from low-income families; the extent to which the eligible entity proposes to support high-performing charter schools that plan to enroll a large percentage of students who attend schools that have been identified as focus schools or priority schools under subsection
(c)or
(d)of section 1116 through the State accountability and improvement system; the geographic diversity of the eligible entities, including the distribution of grants between urban and rural areas; and the number of eligible entities in a State that are receiving grants under this subpart in any fiscal year. To assist charter schools with addressing the cost of acquiring, constructing, and renovating facilities and accessing facilities and facilities financing, an eligible entity receiving a grant under section 5433(a) shall, in accordance with State and local law, directly or indirectly, alone or in collaboration with others, deposit the funds received under this subpart (other than funds used for administrative costs in accordance with section 5437) in a reserve account established and maintained by the eligible entity for this purpose. Amounts deposited in such account shall be used by the eligible entity for 1 or more of the following purposes: Guaranteeing, insuring, and reinsuring bonds, notes, evidences of debt, loans, and interests therein, the proceeds of which are used for an objective described in section 5434. Guaranteeing and insuring leases of personal and real property for an objective described in section 5434. Facilitating financing by identifying potential lending sources, encouraging private lending, and other similar activities that directly promote lending to, or for the benefit of, charter schools. Facilitating the issuance of bonds by charter schools, or by other public entities for the benefit of charter schools, by providing technical, administrative, and other appropriate assistance (including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue). Funds received under this subpart and deposited in the reserve account established under subsection
(a)shall be invested in obligations issued or guaranteed by the United States or a State, or in other similarly low-risk securities. Any earnings on funds received under this subpart shall be deposited in the reserve account established under subsection
(a)and used in accordance with such subsection. An eligible entity may use not more than 2.5 percent of the funds received under this subpart for the administrative costs of carrying out its responsibilities under this subpart. The financial records of each eligible entity receiving a grant under this subpart shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an independent public accountant. Each eligible entity receiving a grant under this subpart annually shall submit to the Secretary a report of its operations and activities under this subpart. Each annual report submitted under paragraph
(1)shall include— a copy of the most recent financial statements, and any accompanying opinion on such statements, prepared by the independent public accountant reviewing the financial records of the eligible entity; a copy of any report made on an audit of the financial records of the eligible entity that was conducted under subsection
(a)during the reporting period; if applicable, an evaluation by the eligible entity of the effectiveness of its use of the Federal funds provided under this subpart in leveraging private funds; a listing and description of the charter schools served during the reporting period and the performance of such charter schools in increasing student achievement and growth, consistent with section 1111; a description of the activities carried out by the eligible entity to assist charter schools in meeting the objectives set forth in section 5434; and a description of the characteristics of lenders and other financial institutions participating in the activities undertaken by the eligible entity under this subpart during the reporting period, if applicable. The Secretary shall review the reports submitted under paragraph
(1)and shall provide a comprehensive annual report to Congress on the activities conducted under this subpart. No financial obligation of an eligible entity entered into pursuant to this subpart (such as an obligation under a guarantee, bond, note, evidence of debt, or loan) shall be an obligation of, or guaranteed in any respect by, the United States. The full faith and credit of the United States is not pledged to the payment of funds which may be required to be paid under any obligation made by an eligible entity pursuant to any provision of this subpart. The Secretary, in accordance with chapter 37 of title 31, United States Code, shall collect— all of the funds in a reserve account established by an eligible entity under section 5436(a) if the Secretary determines, not earlier than 2 years after the date on which the eligible entity first received funds under this subpart, that the eligible entity has failed to make substantial progress in carrying out the purposes described in such section; or all or a portion of the funds in a reserve account established by an eligible entity under section 5436(a) if the Secretary determines that the eligible entity has permanently ceased to use all or a portion of the funds in such account to accomplish any purpose described in such section. The Secretary shall not exercise the authority provided in subsection
(a)to collect from any eligible entity any funds that are being properly used to achieve 1 or more of the purposes described in section 5436(a). The provisions of sections 451, 452, and 458 of the General Education Provisions Act shall apply to the recovery of funds under subsection (a). This section shall not be construed to impair or affect the authority of the Secretary to recover funds under part D of the General Education Provisions Act. .
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U.S. Code
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Sec. 5401
Public charter schools
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